The limited liability company (GmbH) is the most common business form among Austrian entrepreneurs because it offers administrators and investors security. A GmbH has its own legal identity and is a separate legal entity. The business is capable of acquiring rights, taking on liabilities, suing people, and being sued. The company’s owners and shareholders are not personally liable for its debts or obligations under the law. A company needs at least one director, one shareholder, a legally registered address in Austria, and EUR 35,000 in share capital (€10,000 for startups) to create a GmbH. Before incorporation, at least half of the shareholder capital must be paid in. Additionally, the company has to be registered with the city’s commercial registrar.
Austrian limited liability company registration
The procedures needed to form an LLC in Australia are as follows:
Obtain proof that your company is a new one
You may not have to pay some setup costs if you are opening a new company. However, you must get the Economic Chamber to certify that your company is a new entity. You may accomplish this by registering with the Economic Chamber using the form NeuFö2 (found on the website of the Austrian Ministry of Finance). If it is determined that your company is a new operation, you could not be required to pay:
- Tax on real estate transfers
- a stamp duty
- certain administrative costs
- Fees for new registrations in the cadastral and commercial registers
- Amounts paid for ancillary wages and social security (for 1 year)
Select a company name
The name of a new company should be distinctive, not infringe on any already-registered trademarks, and not be too similar to the names of any other companies. Avoid using terms that are illegal to use in a company name in the name. This includes abusive language, terms that purposefully misrepresent the nature of the firm, and statements that give the impression that the company is an official government entity. GmbH must be a component of the business name for LLCs.
Create the company’s official documentation
You may start preparing the paperwork needed for business registration and incorporation after you’ve decided on a company structure. Among the paperwork that a GmbH needs are:
- Association bylaws/Company Agreement (notarized)
- Resolution of the shareholders appointing the management directors (notarized)
- Examples of managing directors’ signatures (notarized)
- Statement on the payment of corporate tax
- Declaration of payment from directors and confirmation that an Austrian bank has acquired the minimum amount of capital necessary for the establishment
- A certificate from the regional economic chamber attesting to the validity of the business name (required when corporations use certain words in their name)
- Resolution by shareholders relating to the election of the supervisory board (notarized)
These papers will need to be prepared using a variety of bits of information, including:
- The directors’ and chairman’s personal information (DOB, passport, names)
- Austrian registered office address
- Activities’ scope
- Investor contributions
- Equilibrium statement for annual accounts
- Details about previously awarded business licenses, etc.
Create a bank account and deposit the bare minimum of capital
Share capital must be deposited by the corporate entity in an Austrian bank account. When the business is registered, confirmation of the deposit must be received and provided.
The commercial registry entry
The company must submit an admission application to the Commercial Registry. This necessitates the submission of various already prepared papers.
Registration at the tax office
The Commercial Register will inform tax authorities that a new business has been founded upon registration with the register. The firm will subsequently be asked to register for taxes by the tax authorities. To achieve this, the company needs to fill out many documents and submit them to the tax authorities. The firm will subsequently get a VAT number and a tax identification number from the taxing authorities. Within one month of its launch, all new firms must receive a tax identification number.
Join the trade authority’s database
Businesses must register with the appropriate trade authority in the region where they do business if they engage in any activity covered by the Trade, Commerce, and Industry Regulation Act (1994). For certain company kinds, proof of professional competence may also be necessary.
Sign up with other organizations
The company must additionally submit information to:
Local health insurance provider (GKK)
Employees must register with a medical insurance provider before the employer employs them. The director must be registered if the company the firm operates under is one.
Social security for businesses
Directors of companies must sign up for Commercial Social Insurance.
Municipal identification
If the company needs a use permit or planning authorization, it may need to register with the local authorities.
Utilize incentives for investments
Businesses that invest money in certain sectors of the Austrian economy are given incentives by the government. Check to discover whether your freshly launched firm qualifies for any tax breaks or other advantages. The Austrian government is now concentrating on offering incentives to companies that are:
- Small- to medium-sized businesses
- research and development activities
- executing measures to enhance regional economic growth
- delivering services in education and training
- helping to reform and modernize the economy
- protecting the environment by working
By taking advantage of these perks, you may launch your company with a bang.
You may also find these articles helpful
VAT number registration in Austria – full guide
Guide on company liquidation in Austria
Guide on obtaining EORI number in Austria
